Columbus Blue Jackets Star Jack Johnson Files Bankruptcy

[billchao]

I saw this on another website and I had to share it. [Quote]...But sources close to Johnson have told The Dispatch that his own parents — Jack Sr. and Tina Johnson — are among the “wrong people” who led him astray financially. In 2008, Johnson parted ways with agent Pat Brisson, who represents some of the National Hockey League’s biggest stars, including Sidney Crosby, Patrick Kane and Jonathan Toews. With no agent and little knowledge of how the financial world works, Johnson turned over control of his money to his parents. In 2011, in the weeks leading up to Johnson’s first big contract — a seven-year, $30.5 million deal signed with the Los Angeles Kings, under which he now plays for the Blue Jackets — Johnson signed a power of attorney that granted his mother full control of his finances. Tina Johnson borrowed at least $15 million in her son’s name against his future earnings, sources told The Dispatch, taking out a series of high-interest loans — perhaps as many as 18 — from nonconventional lenders that resulted in a series of defaults.[/quote]His parents took out high interest loans in his name and spent the money on themselves. That's some pretty awful parenting right there. [URL]http://bluejacketsxtra.dispatch.com/content/stories/2014/11/20/blind-sided.html[/URL]

[Warren Zevon]

That's just crazy. It's unfortunate when the person you're trusting with your finances isn't reliable. What's worse is that it was his mother. That's going to be one very awkward Christmas dinner. On the plus side, he may still be able to make more in the last few years of his contract than the rest of us will ever see in our lifetimes. Maybe for payback they can strap pads on his parents and then tape them to the goal nets like in the Mighty Ducks.

[iacas]

That's just crazy. It's unfortunate when the person you're trusting with your finances isn't reliable. What's worse is that it was his mother. That's going to be one very awkward Christmas dinner.

He's estranged from them now.

I read they took out a 24% mortgage on $3M or something, and/or a $1.5M mortgage with a $1M balloon payment that was due very early after the loan was taken out (which seems stupid - just take out a $0.5M mortgage…).

Really lame parents.

[newtogolf]

He's estranged from them now.

I read they took out a 24% mortgage on $3M or something, and/or a $1.5M mortgage with a $1M balloon payment that was due very early after the loan was taken out (which seems stupid - just take out a $0.5M mortgage…).

Really lame parents.

It's crazy how many star athletes and lottery winners end up going bankrupt because of leeches, scams and poor money management.

In theory Johnson should be set for life, instead he's going to spend the next few years getting out of this financial disaster.  It will be interesting to see how the courts handle this given his future contract value was monetized and borrowed against, which means his current and future salary has already been spent by his parents.

[billchao]

It's crazy how many star athletes and lottery winners end up going bankrupt because of leeches, scams and poor money management.

Leeches and sharks I can understand, but when the people embezzling your money are your own parents, that's an all-time low. If you can't trust your parents, who can you trust?

[Shorty]

If you can't trust your parents, who can you trust?

In the world of professional sports, almost no-one. ESPECIALLY not family.

History is a great teacher.

[mcanadiens]

It's a real shame. The fella went to that famous academic bastion up north of here, so I assume he's a pretty sharp guy.

Ultimately everyone would be well served to always take an active role in your finances. If you let someone else (even good ole mom) manage them and just assume you are in good hands, you take a terrible risk.